Research On Earnings Management Of Non-recurrent Profit And Loss In ST Company

At present,China's economic development has entered a new normal,and the market economy under the new normal depends on the development and improvement of the capital market.However,the issue of earnings management of listed companies has always hindered the development of China's capital market.Under the background of stricter securities regulation,the space for manipulating accrued profits and real-life two earnings management methods is getting smaller and smaller,and it is necessary for China's listed companies to use non-recurring profit and loss classification changes for earnings management.s method.In order to avoid the risk of delisting,the phenomenon that China's ST company uses non-recurring profit and loss classification means to adjust corporate income is still growing.Therefore,it is necessary to conduct research on the management of non-recurring profit and loss earnings.This paper mainly uses the case study method to study the situation of ST's use of non-recurring gains and losses for earnings management.First of all,this paper combs the relevant literature on earnings management at home and abroad,and outlines the relevant theoretical basis.Then,it briefly summarizes the definition of non-recurring gains and losses and conducts statistical analysis of the relevant information on non-recurring gains and losses that have been disclosed in the securities market.Finally,Shenzhen Xindu Hotel Co.,Ltd.is the research object,from the definition of non-recurring profit and loss,the accounting standard of rental income and the motivation of the insurance brand,whether the new retreat will use the non-recurring profit and loss classification method to make a surplus.Management makes judgments and studies the reasons for the implementation of earnings management and the economic consequences.Specific to the case,this paper finds:(1)Xindu Hotel,which has a strong sense of turning losses,does use the non-recurring classification change method to implement earnings management;(2)The main reason for the implementation of earnings management in Xindu Hotel is the use of accounting The loopholes of the standard,the non-recurring income items are classified as core income to evade delisting by inflating operating profit;(3)The problems of poor management,lack of internal control,and independent auditing attitude of Xindu Hotel create the company's earnings management The conditions have brought huge losses to investors and creditors.The results of this paper show that:(1)Earnings management with non-recurring gains and losses has become a common means for ST companies to evade delisting;(2)From the definition of existing non-recurring gains and losses and accounting disclosure standards,it is not conducive to standardization.The excessive earnings management behavior of listed companies in China;(3)ST enterprises use non-recurring profit and loss items to classify changes for earnings management,which is only a short-term behavior to achieve profitability for enterprises,and the economic crisis of enterprises has not changed.Therefore,relevant suggestions can be made in the following aspects:(1)formulating accounting disclosure standards for non-recurring gains and losses;(2)improving the definition of non-recurring gains and losses;(3)strengthening the internal control structure of enterprises and improving corporate governance.(4)Increase the cost of auditing faults and strengthen the responsibility of the external audit department;(5)Strengthen the supervision of securities institutions and promote the effectiveness of the delisting system.